Most Clicked The Financial Services Roundtable SmartBrief Stories
1. CFPB to take a closer look at prepaid cards
The Financial Services Roundtable SmartBrief | May 23, 2012
With the prepaid-card industry expected to expand 42% in the next couple of years, the Consumer Financial Protection Bureau says it's going to take a closer look at regulations for the cards. CFPB Director Richard Cordray says prepaid-card users are often "the most vulnerable among us," and the agency will seek public comment to examine issues such as fee transparency and consumer protections. Hill, The (05/23) Wall Street Journal, The (05/23)
2. FSOC provides framework for protesting SIFI designation
The Financial Services Roundtable SmartBrief | May 24, 2012
The Financial Stability Oversight Council has approved procedures for nonbank firms to appeal a designation as a systemically important financial institution. The FSOC could make final an initial set of systemically important financial market utilities as early as this summer. The designation of nonbank firms would likely come later in the year. National Underwriter Life & Health (05/23)
3. TD Bank's Clark: Interest rates, Durbin amendment are headwinds
The Financial Services Roundtable SmartBrief | May 29, 2012
Low interest rates and the Durbin amendment are among major headwinds for TD Bank in the U.S., said Ed Clark, president and CEO. But TD Bank's expanding U.S. market share is offsetting those challenges, he said. The bank has an advantage in the mortgage business, where refinancing is booming, because it isn't bogged down with subprime-related problems as some of its competitors are. "We have a pretty clean balance sheet, and we have lots of liquidity, and so we're really taking advantage of a market where there's a scarcity of good lenders," Mr. Clark said. CNBC (05/24)
4. Survey: 62% of Americans are clueless about 529 plans
The Financial Services Roundtable SmartBrief | May 29, 2012
More than 60% of Americans said they did not know what a 529 savings plan was, according to a survey by Edward Jones. Individuals with higher incomes and college degrees were more likely to be familiar with the accounts and their purpose. Financial-Planning.com (05/24)
5. Wells Fargo executives explain their approach to risk, hedging
The Financial Services Roundtable SmartBrief | May 23, 2012
Wells Fargo's Chief Financial Officer Timothy Sloan said that hedging is important for the bank's mortgage business, but that Wells Fargo has less risk than its peers. Speaking to investors, Mr. Sloan was joined by Chief Executive Officer John Stump, who added that part of Wells Fargo's culture is to be "willing to say, 'I don't understand this, I won't do this'." Wall Street Journal, The (05/22)
6. What would Sallie do?
The Financial Services Roundtable SmartBrief | May 25, 2012
Sallie Krawcheck, Bank of America's former president of global wealth and investment management, offers four ways to repair the U.S. banking system. Among her prescriptions: Pay executives with bonds and stock, pay dividends as an earnings percentage and don't judge managers only by the earnings they bring. "Boards need simple and commonsense -- but powerful -- tools to cut through the complexity and push management behavior in the direction of responsible risk taking," she writes. Harvard Business Review (06/2012)
7. Q1 bank earnings hit a 5-year high, but lending fell
The Financial Services Roundtable SmartBrief | May 25, 2012
The U.S. banking industry earned $35.3 billion in the first quarter, the highest quarterly number since the first half of 2007, the Federal Deposit Insurance Corp. reported. Although the mostly upbeat report highlights how far the industry has come since the economic crisis began, it noted that loans to consumers have fallen in most categories as banks stay cautious about lending. New York Times (tiered subscription model), The (05/24) AmericanBanker.com (free registration) (05/24) Reuters (05/24)
8. BofA's Moynihan defends universal banking model
The Financial Services Roundtable SmartBrief | May 23, 2012
Bank of America CEO Brian Moynihan said the bank has narrowed the scope of its business to address concerns about it being too big to manage. He defended the universal banking model, saying it's important for customers to access capital markets, investment advice, global information and basic banking in one place. Forbes (05/21)
9. BofA to buy back $330M in mortgages from Freddie Mac
The Financial Services Roundtable SmartBrief | May 24, 2012
Bank of America is buying back from Freddie Mac $330 million in mortgage loans made over the past two years, most of which are current and performing, the bank says. Freddie Mac has objected to the appraisal process used when the loans were issued, according to Bank of America. Wall Street Journal, The (05/23)
10. CFPB provides details for nonbank oversight
The Financial Services Roundtable SmartBrief | May 25, 2012
Nonbank firms that are targeted for supervision by the Consumer Financial Protection Bureau will be allowed to respond and file a petition to end agency supervision after two years, the CFPB says in a proposal. If the CFPB decides to supervise a company, it can access to the company's books and require reports and data, the agency says. Wall Street Journal, The (05/24)
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